Information for GET Customers Regarding Amortization Refunds

GET units purchased after May 1, 2011, included fees to ensure the financial stability of the program after the Great Recession. Since the program’s financial health recovered more quickly than expected, the GET Committee voted to refund the amortization fees paid by all customers who have unredeemed units purchased at prices of $163 or greater. This refund is a return of contributions and does not include any gains. Though federal income tax and IRS penalties apply to the gains portion of a 529 savings plan distribution, your tax advisor or IRS Publication 970 may provide clarification on the tax implications of this refund for your household.

Why did I receive this amortization refund and what do I need to do?

All customers who have unredeemed units purchased at unit prices of $163 and/or $172 have received an automatic amortization refund. The refund amount is based on the year the units were purchased and the total number of units purchased at $163 or $172. It is an automated refund sent to all accounts that qualify in the form of a check issued to the GET Account Owner.

The refund amount per unit is listed below, which is directly correlated to the original amortization amount paid per unit:

Dates units purchased are as follows:

Dates Units Purchased

Refund Amount Per Unit

05/01/2011 to 06/30/2012

$18.70

07/01/2012 to 07/02/2013

$19.73

07/03/2013 to 06/30/2015

$20.82

Note:Customers who fully refunded their accounts before the automated amortization refunds were processed received their amortization refund as part of their total refund, and did not receive a separate amortization refund check. However, any account refunds processed after the amortization refunds were completed will receive two separate checks: one for the amortization amount, and one for their total account balance, minus the amortization refund amount.

Custom Monthly Plan Payment Adjustments

GET has made the following adjustments to Custom Monthly Plans that were locked in at a purchase price of $163 per unit or greater:

Refinanced Custom Monthly Plan contracts based on an adjusted unit price (the original unit price paid minus the amortization amount). The reduced principal and total finance charges that customers pay over the life of the Custom Monthly contract results in a lower monthly payment amount.

Calculated each customer's refund amount based on the difference between the original monthly payment and the new, lower monthly payment. This difference was multiplied by the number of payments made to date on the Custom Monthly contract to determine the total refund amount.

Sent a refund check for this amount to customers, as well as information on how to view their revised monthly payment amount. Customers who used coupons with their former payments can also expect to receive new coupon books with the updated monthly payment amount indicated.

Find Your New Custom Monthly Plan Payment Amount

Effective March 2016, on-going monthly payment amounts have been adjusted for all Custom Monthly Plans established since May 1, 2011. The following charts reflect what the new payment amount will be for all customers that established Custom Monthly Plans during the enrollment periods of 2011-2012, 2012-2013, 2013-2014, and 2014-2015. To find your new monthly payment, locate the chart that corresponds with the year that you established your Custom Monthly Plan.

For Custom Monthly Plans opened between May 1, 2011 and June 30, 2012 +-

The chart below reflects what the new monthly payment amount will be for all customers who established Custom Monthly Plans between May 1, 2011 and June 30, 2012 at $163/unit. To find your new monthly payment, locate the appropriate payment term and number of units purchased. For instance, if you have a Custom Monthly contract for 100 units to pay over 10 years, your new monthly payment is $173.

For Custom Monthly Plans opened between July 1, 2012 and June 30, 2013 +-

The chart below reflects what the new monthly payment amount will be for all customers who established Custom Monthly Plans between July 1, 2012 and June 30, 2013 at $172/unit. To find your new monthly payment, locate the appropriate payment term and number of units purchased. For instance, if you have a Custom Monthly contract for 100 units to pay over 10 years, your new monthly payment is $182.

For Custom Monthly Plans opened between July 1, 2013 and June 30, 2014 +-

The chart below reflects what the new monthly payment amount will be for all customers who established Custom Monthly Plans between July 1, 2013 and June 30, 2014 at $172/unit. To find your new monthly payment, locate the appropriate payment term and number of units purchased. For instance, if you have a Custom Monthly contract for 100 units to pay over 10 years, your new monthly payment is $181.

For Custom Monthly Plans opened between July 1, 2014 and June 30, 2015 +-

The chart below reflects what the new monthly payment amount will be for all customers who established Custom Monthly Plans between July 1, 2014 and June 30, 2015 at $172/unit. To find your new monthly payment, locate the appropriate payment term and number of units purchased. For instance, if you have a Custom Monthly contract for 100 units to pay over 10 years, your new monthly payment is $181.

Your first monthly payment at the new amount takes effect in March 2016.

Why didn’t my amortization refund go towards the purchase of more units instead of being refunded to me? +-

Since there is no unit price at this time and the Committee has voted to delay the purchase of units for a period of up to two years, we are unable to credit your account for more units. We have sent a check to the address you have on file.

Where can I find my new monthly payment amount? +-

The new monthly payment amount can be found in the My Account, Account Info section of your online GET account.

I have an automatic withdrawal (ACH) set up on my custom monthly account. Will this be adjusted? +-

We will automatically adjust your ACH payment amount if it is the exact amount of your pre-amortization monthly payment that was due. If you are making payments more or less than the required payment, you will have to log into your account online to make any adjustments.

I have payroll deduction set up with my employer to make my monthly payment. Will this be adjusted? +-

How did you determine my amortization refund amount? +-

Custom Monthly: The refund amount is calculated by taking the new monthly payment amount, times the number of payments made to date, minus the total contributions made to date.
((New monthly payment x payments made to date) - Total monthly contributions to date).

Example: You’ve paid in a total of $5,474 into your account. Your new monthly payment is $142 per month and you’ve made 34 payments. Your refund amount will be $646.00 (($142x34)-$5,474 = -$646).

Lump Sum: The refund amount is calculated based on the date your payments were received. The amount of adjustments per units is based on the following:

05/01/2011 to 06/30/2012, $163 unit price reduced by $18.70

07/01/2012 to 07/02/2013, $172 unit price reduced by $19.73

07/03/2013 to 06/30/2015, $172 unit price reduced by $20.82

Why did I get a refund if I have a past due balance on my Custom Monthly account? +-

The status of your account did not change. If your account was past due it will remain past due. You can use the funds from the amortization refund to help get you caught up. You can write a check, payable to “GET” and mail to PO Box 84824, Seattle, WA 98124-6124.

My custom monthly account is paid several months ahead, but the “monthly payment due” reflected on my payment history still shows the old amount. Why was this not adjusted? +-

Because your account is paid ahead it will remain paid ahead. The amortization refunds were processed in February 2016, so you will see a “monthly payment due” reduction on your statement and payment history in that month.

The reduction amount is calculated by taking the difference between the old payment amount and the new payment amount and multiplying that number by the total months that have been billed on your account.

Why did I receive several different checks? +-

As a result of our batch processing, customers with multiple accounts that have unredeemed units purchased at unit prices of $163 and/or $172 may receive multiple refund checks.